Senate Extends Assets Declaration to Financial Institutions’ Workers

•House moves to ban bank employees from operating foreign accounts

Sunday Aborisade and Juliet Akoje in Abuja

The Senate yesterday commenced the process of amending the Bank Employees’ Act to provide for the inclusion of all financial institutions’ staff in compulsory declaration of assets.

On its part, the House of Representatives yesterday moved to amend same Act with a view to banning all bank employees in the country from operating foreign accounts.

The proposed legislation by the Senate was tagged, “A bill for an Act to amend the Bank employees etc. (declaration of assets) Act cap b1 laws of the federation 2010 and for related matters 2022 “

It was sponsored by Senator Mohammed Sani Musa (Niger East). Musa said the bill sought to amend the Bank Employees, etc. (Declaration of Assets) Act, Laws of the Federation 2010,

He said it would bring it in conformity with the 1999 Constitution of the Federal Republic as amended, as well as resolving certain anomalies brought about by present day realities and best practices in our financial system.

He also said it would provide the necessary legal framework regarding assets declaration of employees in the financial institutions, pension fund administrators, stock brokers and insurance firms and ensure that their employees’ assets declaration are regulated by the relevant and statutory regulator of the specific sector.

The statutory regulators for the various sectors were listed to include the Central Bank, National Pensions Commission, Securities and Exchange Commission and the National Insurance Commission.

He also said the Economic and Financial Crimes Commission (EFCC) had on March 16, 2021, announced that all employees of financial institutions (including banks) in Nigeria must declare their assets before 1st June, 2021.

He said the instruction was in line with the provisions of the Bank Employees, etc. (Declaration of Assets) Act 1986 (the EFCC Order). The directive, he said, had elicited several debates as to who the appropriate authority was and the status of the bank workers, and bank casual/part-time workers.

He explained: “The BEDA Act expressly states that all manner, title and types of workers in the bank and financial institutions are to declare their assets.

“The Act covers all employees of financial institutions in Nigeria and those in their foreign branches, from the bank executives to cleaners, drivers, messengers, and the last person on their chain, whether in full or temporal employment.

“By the provisions of the Principal Act, the Secretary to the Government of the Federation, being the appropriate authority, was given the responsibility of keeping completed forms of Assets Declaration by employees of banks and Customs service.

“Then, the Secretary to the Government of the Federation had the combined functions of the present Head of Service of the Federation as well as the Secretary to the Government of the Federation.

“Whether those records of assets declaration were kept as prescribed by the Act or not is yet to be ascertained.”

In a related development, the Chairman of the House Committee on Financial Crimes, Ibrahim Abdullahi who briefed journalists in Abuja said the move was to address the prevailing situation in the country where bank employees aid illicit financial flows.

The bill was passed for Second Reading on the floor of the House during plenary and referred to the Committee on Financial Crimes for further legislative actions.

The Amendment Bill which was sponsored by Hon. Abiola Shina Pellar, sought to basically amend or review the existing Act to conform to current realities in the country.

“It is worthy of note that the Act was promulgated under the military era and as such, carries with it, some elements of that regime, hence the significance of this Amendment,” he said

The overall objective of the legislative proposal was to check the excesses of not only bank employees but, financial institutions in general.

He noted that in modern times, there has been a surge in the establishment of various forms of financial institutions in the society compared to what was obtainable in the 1960s and even 1980s when financial institutions in Nigeria were mostly banks.

“Today, we have a proliferation of insurance companies, mortgage banks, Pension Fund Administrators and even lending organizations etc. who equally require supervision like banks”

“Accordingly, Clause 1, sub-clause (1) of the Bill seeks to compel employees of a bank to immediately declare their assets including those of their spouses and unmarried children under the age of 18years.

“The bill also amends the existing legislation by inserting a new Clause which attempts to

ban bank employees from maintaining and operating personal bank account in any country outside Nigeria.

“Clause 3 of the Bill also seeks to mandate the President to direct by a published instrument

in the federal gazette informing the application of provisions of the Act to other financial institutions. Thus, the Bill defines other financial institutions to include any individual, body, and association ort group of persons whether corporate or incorporated other than banks licensed in accordance with relevant laws which carries business of a discount house, finance company and money brokerage” he said

The proposed legislation aims to expand the application of the bill to other financial institutions such as Pension Fund Administrators, Insurance and Stock Brokers and such other institutions as defined therein.